Deals



Meggitt PLC acquire the advanced composites businesses of Cobham plc


Posted: 10th August 2015 08:20

Meggitt PLC ("Meggitt" or "the Group"), a leading international engineering group specialising in aerospace, defence and energy markets, has agreed to acquire the advanced composites businesses (the "Businesses") of Cobham plc for US$200 million in cash (the "Acquisition"), financed from existing resources.

The Businesses are global leaders in the design, development and production of highly engineered aerospace composite engine components (spinners, internal multi-stage components, exhaust flaps), radomes (C4I and defensive measures radomes, with a growing position in civil radomes) and complex secondary structures (air-to-air refuelling, structural munitions components). The Businesses will be integrated into Meggitt Polymers & Composites (MPC), a division of Meggitt PLC.

The Businesses operating facilities are located in the United States (San Diego, California and Baltimore, Maryland) and in the UK (Shepshed, Leicestershire and Stevenage, Hertfordshire).

The Businesses revenues in 2014 were US$81.1m. The purchase price implies a multiple of 10x 2016e EBITDA.

Rationale and highlights of the transaction

The Businesses fit well into Meggitt's business model, with strong technologies and a significant level of single-source content.  The Acquisition also represents an excellent strategic and complementary fit with existing Group capabilities:

 
Financial effects of the transaction

Stephen Young, Chief Executive of Meggitt, commented:

"The Acquisition represents a major step in strengthening our composites capability.  The advanced composites businesses of Cobham plc are highly complementary to Meggitt's business model, with strong technology positions, a significant level of single-source content and substantial growth opportunities in commercial aerospace.

"The Acquisition will enhance our materials and manufacturing technologies and product offerings in complex composites, which are key to next generation aircraft components.

"We look forward to welcoming the employees of the advanced composites businesses into our organisation."


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